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Question Practice

How does the historical cost principle affect financial statements?

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MCQ_SA
CBSE
Class 12
Accountancy
Accountancy Part - II
Financial Statements of a Company
Question Bank

How does the historical cost p...

Single Answer MCQ
Q-00082653

How does the historical cost principle affect financial statements?

1

It enhances the reliability of asset valuations.

2

It can lead to misrepresentation of current asset values.

3

It eliminates the need for depreciation.

4

It ensures that financial statements are always up to date.

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